Market Update - May 13, 2014

CBOT futures are trading mixed as corn and soybeans correct part of Monday’s losses. Soybeans are supported by ideas that China’s demand may be holding up better than feared. Although China’s economic news today was weaker than expected. Rising soybean basis at soybean processors indicate that U.S. old-crop supplies remain tight. Brazilian soybeans are arriving at US shores; the question is how much more will come. Corn planting progress won’t be as quick this week as last. Wheat futures are much lower but still ABOVE Monday’s lows. CBOT losing ground to KC and MGEX. The global wheat supply looks to be adequate in 2014.

The MAY CBOT contracts will end trading at Noon Central tomorrow.

Live Cattle futures are down slightly with the June LC contract continuing the down trend off the May 2 high. With midday boxed beef values jumping 2.83 to 226.65, LC futures might find some support. Feeder Cattle futures continue to hold near contract highs.

May Lean Hogs are down for the 12th straight day, and 14 out of last 15 days. This contract expires tomorrow, May 14. FOB Plant Pork cutout dropped 3.80 to 110.02 on weaker loin, rib, ham and belly values. The June LH contract is higher and has charted a bullish reversal. Once the May LH contract is out of the way, June may follow the cash market more so.

SP500 hit new record highs today, but money is also going into “safe” Treasuries --leading to lower yields. US economic news was mostly negative today.

Compared to last week: Steer calves sold steady to 2.00 higher. Heifer calves under 500 lbs steady to 2.00 higher; over 500 lbs steady. A quality offering of calves today was offerred in average to thin flesh, which was met with an active trade. Slaughter Cows steady to 2.00 higher. Slaughter Bulls 1.00-2.00 higher.